In partnership with

TECH TODAY

META: To cut 5% of it’s workforce based on performance.

Industrious: Old school buys new school as CBRE acquires Industrious shared space company.

TikTok: Is TikTok doomed in the U.S.?

 🚀 ADVERTISE WITH US (reply to this email to learn more)

See 2025 clearly with BILL + free Ray-Bans

When you’re at the starting line of 2025, you need a pair of Ray-Ban Smart Glasses to stay focused!

We’ve got you covered with a free pair on us when you take a 30-minute demo of BILL Spend & Expense.¹

Choose BILL Spend & Expense to:

• Automate expense reports so you can focus on strategy

• Set budgets across teams to better control expenses

• Get real-time insights into your company spend

• Access scalable credit lines from $50K to $5M¹

Ready to hit the ground running and see clearly in 2025?

Request a demo

¹ Terms & Conditions Apply. See offer page for more details. The BILL Divvy Card is issued by Cross River Bank, Member FDIC, and is not a deposit product.

TODAY’S HEADLINE NEWS 👀

Tipping Drops As Diners Push Back On Rising Costs

Americans are tipping less at restaurants than at any time in six years, squeezed by rising prices and relentless prompts for gratuities in unexpected places.

In full service restaurant environments, tips averaged 19.3% by late 2024, down from 19.9% in 2021, according to Toast, a restaurant payment platform. The decline mirrors diners’ frustrations as menu prices climb and mandatory service fees appear. Leaving many customers cutting back on dining out or ordering less when they do.

Andrea Hill of HMC Hospitality, which runs Chicago’s Hooters locations, says customers are skipping extra drinks, meaning servers are “making less per table.” Meanwhile, waitstaff like Jenni Emmons in upscale Chicago restaurants fear their incomes are under threat as tipping norms erode under pressure.

About 38% of diners tipped 20% or more in 2024, down from 56% in 2021, according to Popmenu, a restaurant tech company. High costs have diners rethinking generosity, with some balking at new fees.

In Washington, D.C., where voters scrapped the tipped wage system in 2022, 70% of restaurants raised prices. Fritz Brogan, who owns five D.C. eateries, says higher payroll costs forced him to bump prices and cut employee hours, leaving diners confused about service fees and tipping expectations. “No one wants to do math after dinner,” he said.

Worker advocacy groups like One Fair Wage are pushing to eliminate tipped wages entirely, arguing they exploit workers. They’ve made gains in D.C. and Chicago and aim to expand efforts in states like New York and Maryland. But restaurant industry leaders warn these shifts threaten traffic, operators, and workers too.

The fight over tipping, wages, and rising costs shows no sign of slowing, leaving diners and staff to navigate a landscape where generosity increasingly feels like a luxury. Though when a tip system is in place workers do not earn a working wage therefore tips are the bulk of income earned by wait and bar staff so remember to be generous in any case, and extra generous when the service is deemed above that which was expected.

Starbucks New Rules Bathrooms For Customers Only

Starbucks is rolling back its open door policy. Starting January 27, the coffee chain’s North American stores will require customers to make a purchase to use its cafes, patios, or restrooms.

The shift marks the end of a nearly seven year policy allowing anyone to linger. Sparked by a 2018 incident in Philadelphia that led to national backlash and racial sensitivity training. While some praised the policy, Starbucks employees often complained of messes, loitering, and disruptive behavior.

“There's a need to reset expectations,” said Starbucks North America President Sara Trilling. The new policy, outlined in employee notices, includes bans on harassment, smoking, and panhandling. Free water will also be limited to customers and their guests.

Baristas will now ask non compliant individuals to leave, with clearer protocols for involving law enforcement if necessary. CEO Brian Niccol, who took over last year, is revamping Starbucks' approach to improve safety and restore its cafes' inviting atmosphere.

The chain will reintroduce amenities like condiment bars, ceramic mugs, and free coffee refills for those who dine in. But after three quarters of declining sales and complaints of overcrowding and loitering, Starbucks is prioritizing paying customers.

“Our stores will be inviting places to linger,” Niccol wrote, “but for those who actually support our business.”

KKR Sued By Federal Government

The Justice Department is taking aim at KKR. A lawsuit filed Tuesday accuses the private equity giant of mishandling pre-merger filings, risking over $650 million in penalties.

Filed in the Southern District of New York, the suit claims KKR failed to meet legal requirements for at least 16 transactions in 2021 and 2022. The alleged violations fall under the Hart-Scott-Rodino Antitrust Act, a law designed to ensure transparency and prevent antitrust violations.

The DOJ says KKR altered documents and omitted key information in filings to the antitrust division. It also claims the company skipped required filings for two major acquisitions valued at $6.9 billion and $919 million.

KKR is pushing back. The firm filed its own lawsuit against Acting Assistant Attorney General Doha Mekki, accusing the DOJ of overreach and unconstitutional application of the law.

A KKR spokesperson defended the company, calling the errors unintentional. “We are confident all our filings provided the government with the necessary information to fully assess each transaction,” said Kristi Huller.

The battle between KKR and the Justice Department is just beginning. Both sides are digging in for a fight.

THE WEEK IN BUSINESS NEWS

Sketchers The Underdog That Outsold Expectations

The NBA’s MVP and Europe’s top goal scorer don’t lace up Nike or Adidas. Instead, they wear Skechers just like Martha Stewart.

Known for slip on comfort, Skechers has quietly climbed to the third largest footwear brand globally. By 2026, it’s on track to hit $10 billion in revenue without chasing the cool factor. Its strategy is to fill gaps rivals overlook. While Nike courts superstars and Hoka targets runners, Skechers wins over retirees, budget conscious families, and now athletes like Harry Kane and Joel Embiid.

Skechers keeps it simple, a comfy affordable shoe priced around $50 for kids and $115 for pickleball players. It doesn’t dabble in hype driven limited releases, but dominates in overseas markets, even outselling Nike in India.

Founded by Robert Greenberg in 1992, Skechers took decades to rise. Greenberg’s past at L.A. Gear taught him patience and the perils of expanding too fast. Now, with steady growth and $8 billion in 2023 sales, Skechers has doubled its stock price in five years while Nike and Adidas faltered.

Skechers’ pivot into performance shoes and cleats, paired with Nike’s retreat from lower income markets, has opened new doors. Even a pending Nike lawsuit hasn’t slowed its momentum.

For Skechers, it’s not about being flashy, it’s about staying comfortable. As one fan put it, “Since I have these, I’m unstoppable.”

Steel Giants Eye U.S. Steel Amid Political Firestorm

Cleveland-Cliffs and Nucor are talking about teaming up to bid for U.S. Steel, insiders say. But the deal is months away, tangled in politics and lawsuits.

The backstory here is U.S. Steel planned to sell to Japan's Nippon Steel for $55 a share, as The Grind has reported, valuing the company at $14 billion. President Biden blocked the deal, citing national security. President elect Trump backed the move, opposing foreign ownership.

Cleveland-Cliffs wants to buy all of U.S. Steel for cash. Then it would sell Big River Steel, an Arkansas mill, to Nucor. The expected bid is as high as $30 per share. U.S. Steel closed Friday at $34.24, with a $7.7 billion market value. Cleveland-Cliffs is worth $5 billion, and Nucor nearly $29 billion.

If this deal goes through, it would cut the number of big U.S. steelmakers from four to three. Cleveland-Cliffs is the nation’s second largest steel producer, while Nucor leads the pack.

But it’s not simple. A previous attempt by Cleveland-Cliffs to buy U.S. Steel failed, with Nippon outbidding them. Auto groups also objected, fearing a Cleveland-Cliffs monopoly on steel for vehicles.

Litigation adds to the delays. U.S. Steel and Nippon are suing President Biden, the steelworkers union chief, and Cleveland-Cliffs’ CEO, accusing them of blocking the Nippon deal. The government extended Nippon’s acquisition deadline to June 18.

For now, Cleveland-Cliffs and Nucor are biding their time, watching how the legal and political battles unfold. The U.S. steel industry’s future hangs in the balance.

Greenland to Trump We Are Not For Sale

Greenland isn’t joining the U.S., but it’s open to talks. On Monday, Prime Minister Múte Egede responded to President elect Trump’s suggestion of acquiring the Arctic island. “We’ll work with the U.S. yesterday, today, and tomorrow,” Egede said. But he was clear, “Greenlanders don’t want to become Americans.”

Trump’s musing shook the icy capital of Nuuk. His son, Donald Trump Jr., made a surprise visit, fueling speculation. Greenland, a Danish territory, holds strategic and resource rich Arctic land now eyed by global powers like Russia, China, and the U.S.

Greenland’s quest for independence complicates things. Tied to Denmark for centuries, the island relies on hefty subsidies. While autonomy grows, cutting ties fully would be risky.

As Arctic ice melts, Greenland has gained geopolitical value. The U.S. operates a military base here, and America’s interest dates back to WWII. Trump’s push for Greenland echoes a failed U.S. bid to buy the island decades ago.

In Nuuk’s subzero streets, locals balance caution with opportunity. Many, like fisherman Nielseeraq Berthelsen, want stronger U.S. ties, but not at the cost of sovereignty. “What we need is cooperation and trade,” he said, recalling an unexpected handshake with Trump Jr.

Egede summed it up by saying Greenland will navigate carefully as global powers knock on its icy door. 

Southern California Fires Continue To Rage And Destruct

Palisades And Eaton Canyon Fires

The fires are still burning with a fresh whirl of Santa Ana winds flowing through Southern California today threatening to make containment more difficult.

SPORTS

NFL 2025 Playoffs Bracket (Updated)

January 13, 2025 Update: The Los Angeles Rams beat the Minnesota Vikings to advance to the second round of playoffs. The NFL postseason had some blowouts and one, maybe two, good games. Hopefully your team made out better than mine ⚡️ but there’s always next year! Here is the playoff bracket update, along with all the second round matchups. The postseason will conclude with Super Bowl LIX on February 9, 2025 🏈

💰️ Smart Money Matters 💰️ 

Culture Corner

Quiet Quitting Became A Prominent Term Heading Into 2025

In 2024, "quiet quitting" became a buzzword, capturing a shift in how employees view work. It means doing only what your job requires, no extra effort, no overtime. It’s a rejection of hustle culture, with workers prioritizing their health and personal lives over endless ambition.

The trend grew from the pandemic’s aftershocks. The Great Resignation saw millions leave jobs in search of balance and meaning. Burnout pushed others to rethink how much they were willing to give. Younger workers, especially, now seek purpose beyond paychecks.

Opinions differ. Some call it healthy, a stand against overwork and a move toward sanity. Others see it as laziness, a threat to productivity.

Quiet quitting isn’t simple. It reflects a deeper change in workplace expectations. Employers who adapt, offering support, fair pay, and respect, will be the ones to thrive.

With TikTok’s Fate Uncertain Users Look For Alternatives

The Supreme Court is weighing TikTok’s future in the U.S., and with 170 million users on edge, alternatives are gaining attention.

One contender is Lemon8, a ByteDance app blending Instagram and Pinterest. It launched in Japan in 2020 and has slowly expanded. ByteDance has pushed creators toward Lemon8 with promises of incentives. But if TikTok is banned, Lemon8 might face the same fate.

That leaves platforms like Instagram and YouTube. Instagram’s Reels mimics TikTok’s vertical videos, while YouTube offers Shorts for quick clips and its classic long form content. Both platforms are ready to absorb TikTok’s audience.

Creators like Yumna Jawad are already diversifying. “I’m on Flipboard, testing Lemon8, and Threads,” she said. “There’s always a new one, and I’m open to trying.”

As TikTok’s fate hangs in the balance, users may need to explore new digital homes. The question is, where will they land?

ECONOMY

Undocumented Workers Pour Billions Into Social Security They’ll Never Collect

Undocumented immigrants pumped $25.7 billion into Social Security in 2022, according to the Institute on Taxation and Economic Policy. Since they can’t claim benefits without legal status, this money subsidizes payouts for American retirees.

But if mass deportations proceed, an idea floated by past administrations, Social Security could lose $20 billion annually, say program actuaries. With birthrates falling and baby boomers retiring, every dollar counts.

Immigrants, documented or not, are a lifeline for the aging workforce. They pay taxes, often under borrowed or fake Social Security numbers, but cannot access the benefits. Some see this as unfair, others as essential to keeping the system afloat.

Experts warn that stricter immigration policies could worsen Social Security’s funding shortfall, projected to cut benefits by 21% in 2033 if no action is taken. For every 100,000 additional net immigrants annually, the funding gap improves by 0.09% of payroll.

Undocumented workers still file taxes, often through IRS issued taxpayer IDs, hoping to prove good character in future immigration cases. Their contributions to federal, state, and local taxes totaled $96.7 billion last year, reinforcing their role as quiet backers of U.S. social programs.

“They want to integrate,” said Sarah Lora, a tax law professor, “and paying taxes is a key step.”

China’s Trade Surplus Hits $1 Trillion Amid Global Backlash

China’s trade surplus soared to nearly $1 trillion in 2024, the largest in history. Exports flooded global markets while domestic spending on imports lagged. Chinese factories dominated manufacturing on a scale unseen since post WWII America.

Last year, China exported $3.58 trillion in goods and services while importing $2.59 trillion, setting a surplus of $990 billion. December alone saw a record $104.8 billion surplus, driven by shipments rushed to the U.S. ahead of potential tariff hikes by the incoming Trump administration.

China’s trade dominance has drawn criticism worldwide. Industrialized and developing nations alike have imposed tariffs to protect their industries. U.S. Ambassador R. Nicholas Burns accused China of overproducing steel, electric vehicles, and solar panels, flooding global markets and undercutting competitors.

Meanwhile, China’s economy faces internal struggles. A housing market crash has wiped out middle class savings, dampening consumer spending. Overbuilding in manufacturing has also led to falling prices and mounting corporate debt.

China’s government champions self reliance, investing billions in its "Made in China 2025" initiative to dominate advanced manufacturing. The nation has become the world’s top exporter of cars and solar panels, with ambitions to rival Airbus and Boeing in aviation.

Despite global backlash and rising tariffs, China produces a third of the world’s manufactured goods, more than the U.S., Japan, and Germany combined. For now, its exports remain vital to the global economy, even as tensions escalate.

FINANCE

For Food Companies Merchandise Volume Is King

After years of hiking prices, food companies are changing course. Profits from higher prices have hit a ceiling, and executives now see volume growth as the key to success. The plan is to stuff store shelves with creative twists on classics, like barbecue loaded chicken patties, and invest in marketing to win over inflation weary shoppers.

"If you’re growing through price increases, you’re just keeping up," said Anthony Gruber, CFO at Mama’s Creations. His company’s recent growth was up nearly 90% driven by sheer volume.

In today’s tighter economy, volume matters more than ever. Discussions about pricing and product adjustments, once annual, are now monthly. Limited edition items, like mystery flavor Twinkies, or Slim Jims in candy cane tubes, aim to spark excitement and boost sales.

Costco keeps prices low but bets on volume. CFO Gary Millerchip shared how price cuts, like $1 off frozen shrimp, led to a 30% boost in shrimp sales and an 11% rise in overall revenue. “Lower profit per item, but more items sold,” he said.

Still, price hikes haven’t disappeared. Conagra Brands raised prices on Swiss Miss cocoa and Duncan Hines but absorbed higher costs elsewhere. For the first time in years, Conagra saw positive volume growth, with products like frozen meals and microwave popcorn leading the charge.

J.M. Smucker, maker of Folgers and Hostess, is seeing results too. Volume and mix growth surged, fueled by new offerings like Jif’s first major flavor update in a decade, a peanut butter and chocolate spread.

But it’s not a free for all. Companies like Nomad Foods are avoiding “the price trap.” Their strategy is to focus on innovation, quality, and smart promotions, not endless discounts.

In a world where inflation has stretched wallets thin, food companies know price hikes can only go so far. Volume, now, is the game to win.

POLITICS

Trump’s Cabinet Picks Face Scrutiny In Senate

The fight over Donald J. Trump’s cabinet begins this week. Senate hearings will probe more than a dozen nominees. Democrats aim to expose flaws, hoping to sway Republicans and derail some picks.

Tuesday brings the main event, Pete Hegseth, Trump’s pick for defense secretary. Hegseth, a Fox News personality and combat veteran, faces accusations of misconduct, financial mismanagement, and controversial remarks. Democrats, led by Senator Elizabeth Warren, plan to grill him hard.

Trump urges GOP unity to confirm key nominees quickly. Republicans want national security roles filled by Inauguration Day but admit it's unlikely. “The president needs his team,” said Senator John Barrasso. “We’ll work around the clock if needed.”

History says rejections are rare. Still, Democrats aim to highlight baggage, slow confirmations, and force transparency on ethics and F.B.I. checks. “We want to show who they really are,” said Senator Chuck Schumer.

Nominees like Marco Rubio for secretary of state may get bipartisan support, but others, including Hegseth, face a tougher road. Delays are expected, with partisan battles over paperwork, ethics, and loyalty to campaign promises.

The stage is set. The Senate’s verdict will test Trump’s grip on his new administration and the GOP’s unity. The clock ticks toward Inauguration Day.

THE GRIND FACTORY ⚙️

UNIQUELY INTERESTING

💡 Epiphany Moments

Starbucks began in 1971, as small shop in Seattle's Pike Place Market. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker sold high quality coffee beans, tea, and spices. It became a local favorite, known for its focus on quality.

In 1982, Howard Schultz joined the company. A trip to Italy inspired him when he saw coffeehouses as gathering places and imagined Starbucks becoming more than just a seller of beans. By 1987, with investors’ help, Schultz bought the company and set his vision in motion.

Starbucks grew quickly, transforming into a coffeehouse chain. Espresso drinks, lattes, and cappuccinos became staples. Stores opened across the U.S., then the world. Starbucks became a global phenomenon with thousands of locations.

Innovation followed soon thereafter. New drinks, food, and mobile ordering kept customers coming back. Starbucks also embraced social responsibility, ethical sourcing, sustainability, and community engagement became part of its brand.

Today, Starbucks is more than coffee. It’s a cultural icon, a meeting place, and a symbol of modern life. Built on quality, customer experience, and constant evolution, Starbucks became a brand the world recognizes and loves.

 🍎 One Smart Apple

Ready Pac Produce achieved true success in the mid 1990s by revolutionizing the fresh food industry with its single serve salad kit. Known as the Bistro Bowl®, this innovative product transformed the way consumers accessed fresh, healthy meals on the go. Combining convenience, freshness, and portability, it met the rising demand for healthier, ready to eat options and set Ready Pac apart as a pioneer in the pre packaged produce market.

The single serve salad kits quickly became a hit, appearing in grocery stores, convenience stores, and even airline meals. This success drove rapid expansion, with Ready Pac extending its product lines to include fruit and snack packs, becoming a household name for fresh, convenient food. Strategic partnerships with major retailers like Walmart and fast food chains further cemented its market dominance.

In 2017, Ready Pac’s success culminated in its acquisition by Bonduelle, a French agricultural powerhouse, for $409 million. This marked the company’s transition from a U.S. leader to a global player in fresh produce.

Ready Pac’s breakthrough wasn’t just a product it redefined a category, proving that fresh, healthy food could also be convenient and accessible. The single serve salad kit remains a cornerstone of its legacy, reshaping consumer habits and the fresh food industry. 🍏 

 HEALTH & LONGEVITY •ᴗ• This Week For A Long Life

Longevity Essentials Are Simply Making Good Choices

Longevity comes down to choices. Eat well. Stick to whole foods fruits, vegetables, lean proteins, and healthy fats. Avoid processed junk. The Mediterranean diet, heavy on fish and olive oil, is linked to longer life.

Move often. Exercise regularly, 150 minutes of moderate activity a week will do. Add strength training twice a week. Enjoy what you do, and you’ll stick with it.

Sleep matters. Get 7-9 hours a night. Go to bed at the same time. Build a calming bedtime routine.

Stress kills. Manage it with meditation, deep breathing, or time in nature. Keep strong social connections they’re vital.

Don’t smoke. If you drink, do it sparingly.

Visit your doctor. Regular checkups, screenings, and vaccines can catch problems early.

Keep your mind sharp. Learn new things. Stay curious. Stay connected. Life is long if you live it right.

Learn how to make AI work for you

AI won’t take your job, but a person using AI might. That’s why 800,000+ professionals read The Rundown AI – the free newsletter that keeps you updated on the latest AI news and teaches you how to use it in just 5 minutes a day.

Sign up to start learning.

 🚀 ADVERTISE WITH US (reply to this email to learn more)

We value your voice and encourage you to connect with us. Follow us on social media to stay updated, or reply directly to this email. We read every message. Your feedback keeps us going, so please let us know how we’re doing.

The Grind may earn an affiliate fee if you purchase books, products, or services through our links.